Fund of Information

Tiny Funds, Big Prospects

Many investors routinely avoid all tiny funds. That can be a huge mistake.

Chances are you've never heard of $42 million Oberweiss International Opportunities (ticker: OBIOX), yet this fund is up an average of 26% a year over the past three years and ranks in the top 1% of its Morningstar category. The same is true of the $97 million Buffalo Micro Cap fund (BUFOX), up 23% annually in the same stretch, and countless other minuscule funds with jumbo results, but not much of a...